merkd1904

I honestly don't know what to do with my hands

Short
AMEX:SPY   SPDR S&P 500 ETF TRUST
Today was a little disappointing in my eyes as i thought we were going to have that bull flag pattern play out from the past few days. But instead of ripping higher we got goosed, reversed, filled the gap, and tried with a vengeance to regain the 3000 level on ES/SPX. The fight for 3000 is turning out to be pretty epic, there's a heavy bout of resistance here and what worries me is that there is still only 1/2 average volume printing. That tells me a couple things; lack of institutional buying, and lack of conviction. It also looked like there were a lot of people either exiting longs or filling shorts. "They" tried so hard to keep us from reversing at the end of the day on SPY/SPX/ES but it looks like this is running out of steam/getting compressed. There was a long period of consolidation yesterday into the futures last night and still got smacked in the head around 3005 this morning. As i noted in my last post we didn't take care of the negative divergences on the RSI. They're extremely pronounced on the hourly but wash out into the 4H and daily.

I'd like to see a pullback out of the ascending wedge from the past few days back to the $296 level and then i'd feel comfortable shooting back up into the $302-$305 area. But right now this just feels like an algo pump and maybe even a bulltrap. If we do break $300 tomorrow and head to $302 i'd be looking for a sharp reversal. But, if my preferred scenario plays out and we pull back i'd expect support around $296 and if we end up knifing through it i'd expect us to head for the gap at $294.

I did flip net short mid day today.

Attempted to fill the gap*

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